Marketing Management Session 14
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Transcript of Marketing Management Session 14
Creating Brand Equity
ESPN: A Strong Brand
Kerala Tourism has successfully branded the destination with a
brand name, logo, and the tagline “God’s Own Country”
Steps in Strategic Brand Management
• Identifying and establishing brand positioning
• Planning and implementing brand marketing
• Measuring and interpreting brand performance
• Growing and sustaining brand value
What is a Brand?
A brand is a name, term, sign, symbol or design, or a combination of them, intended
to identify the goods or services of one seller or group of sellers and to differentiate them from those of
competitors.
The Role of Brands
Identify the makerIdentify the maker
Simplify product handlingSimplify product handling
Organize accountingOrganize accounting
Offer legal protectionOffer legal protection
The Role of Brands
Signify qualitySignify quality
Create barriers to entryCreate barriers to entry
Serve as a competitive advantage
Serve as a competitive advantage
Secure price premiumSecure price premium
What is Branding?
Branding is endowing products and services with the power of
the brand.
What is Brand Equity?
Brand equity is the added value endowed on products and services, which may be
reflected in the way consumers, think, feel, and act with respect to the brand.
Brand Knowledge
Knowledge
Thoughts
Experiences
BeliefsImages
Feelings
Advantages of Strong Brands
• Improved perceptions of product performance
• Greater loyalty• Less vulnerability to
competitive marketing actions
• Less vulnerability to crises
• Larger margins• More inelastic
consumer response• Greater trade
cooperation• Increased marketing
communications effectiveness
• Possible licensing opportunities
Apple is a Strong Brand
What is a Brand Promise?
A brand promise is the marketer’s vision of what the brand must be and do for
consumers.
Burger King Builds Its Brand with Social Connectivity
Brand Equity Models
• Brand Asset Valuator
• Aaker Model
• BRANDZ
• Brand Resonance
BAV Key Components
Differentiation
Energy
Relevance
Esteem
Knowledge
Brand Dynamics Pyramid
Presence
Relevance
Performance
Advantage
Bonding
Strong Relationship
Weak Relationship
Aaker Model
Brand Identity
Extended Identity
ElementsBrand Essence
Core Identity
Elements
Brand Resonance Pyramid
Drivers of Brand Equity
Brand Elements
Marketing Activities
Meaning Transference
Brand Elements
ElementsSlogans
Brand
names URLs
Logos
SymbolsCharacters
Brand Element Choice Criteria
• Memorable• Meaningful• Likeability• Transferable• Adaptable• Protectible
Slogans
• Believe in the best• Just do it• Hungry kya?• Delighting you always
• I’m lovin’ it• Innovation at work
Designing Holistic Marketing Activities
Personalization
Integration
Internalization
Internal Branding
• Choose the right moment
• Link internal and external marketing
• Bring the brand alive for employees
Secondary Sources of Brand Knowledge
Measuring Brand Equity
Brand AuditsBrand Audits
Brand TrackingBrand Tracking
Brand ValuationBrand Valuation
The 10 Most Valuable BrandsBrand 2006 Brand Value (Billions)
Coca-Cola $67.00
Microsoft $56.93
IBM $56.20
GE $48.91
Intel $38.32
Nokia $30.13
Toyota $27.94
Disney $27.85
McDonald’s $27.50
Mercedes-Benz $22.13
Managing Brand Equity
Brand ReinforcementBrand Reinforcement
Brand RevitalizationBrand Revitalization
Brand CrisesBrand Crises
Interbrand’s Steps in Calculating Brand Equity
• Market segmentation
• Financial analysis
• Role of branding
• Brand strength
• Brand value calculation
Devising a Branding Strategy
Develop new brand elements
Develop new brand elements
Apply existing brand elements
Apply existing brand elements
Use a combination of old and new
Use a combination of old and new
Branding Terms
• Brand line• Brand mix• Brand extension• Sub-brand• Parent brand• Family brand
• Line extension• Category extension• Branded variants• Licensed product• Brand dilution• Brand portfolio
Brand Naming
Individual namesIndividual names
Blanket family namesBlanket family names
Separate family namesSeparate family names
Corporate name-individual name combo
Corporate name-individual name combo
Reasons for Brand Portfolios
• Increasing shelf presence and retailer dependence in the store
• Attracting consumers seeking variety
• Increasing internal competition within the firm
• Yielding economies of scale in advertising, sales, merchandising, and distribution
Brand Roles in a Brand Portfolio
Flankers
Low-end
Entry-level
High-end
Prestige
Cash Cows
Marketing Debate
Are brand extensions good or bad?
Take a position:1. Brand extensions can endanger brands.
or
2. Brand extensions are an important brand-growth strategy.
Marketing Discussion
How can you relate the different modelsbrand equity presented in this chapter? How are they similar? Different? Can you reconstruct a brand-equity Model that incorporates the best of each?